A new Zoocasa survey sheds light on Canadian sentiment surrounding the housing market. How confident do long term and short term homeowners feel about their real estate acquisitions? Do Canadians believe real estate is a solid investment?
Long-term Homeowners Most Confident in Canadian Housing Market
Zoocasa’s 2019 housing outlook found that existing long term (10+ years) homeowners showed the most positive sentiment regarding the housing market and their investment. Newer homeowners showed less positive sentiment a, and renters showed the least. Renters also recorded the least satisfaction regarding their current home.
Homeownership is still a key life milestone for most Canadians
Despite Canada’s tougher financial thresholds to ownership, the majority of respondents claimed that purchasing a home is a key life milestone: 81% of long-term owners, 77% of short-term owners, and 63% of renters. The goal of homeownership was also strong among renters: 92% responded that they intended to eventually buy a home, and 59% planned to do so in the next five years.
Still, there are advantages to renting…
Despite the general aim of buying a home, most Canadians believe that there are advantages to renting – less than half of homeowners (49%) believe paying rent is a waste of money, and only 36% of renters agree.
Half of all Canadians see real estate as a solid investment
Confidence is highest among long term homeowners, 50% of whom believe the real estate offers good investment opportunities. This positive sentiment dwindles among short term renters (45%) and plummets when it comes to renters (16%).
However, 89% of all existing homeowners do not regret their real estate purchase, and perceive and buying real estate is still perceived to be among the safest financial investments. Only 30% of renters feel the same way.
How satisfied do Canadians feel about their current homes?
43% of long term homeowners felt that their current home was their “dream home.”
Only 24% of newer homeowners said the same thing.
Renters showed the least positive sentiment towards their home – only 7% saw their current resident as a dream home.
How do Canadians feel about rising interest rates and prices?
Anxiety was high among all groups of respondents, when it came to sentiments surrounding current market conditions and affordability.
The majority of Canadians who do not live in their dream home feel they would never afford to do so should current market conditions continue.
Renters appeared to be most impacted by the current rising interest rate environment. 28% claimed higher rates would impact their ability to buy property, compared to just 13% of homeowners.
Do Canadians feel government should take action to cool the housing market?
The majority (71%) of Canadians feel the federal government implement policy to keep Canadian real estate prices affordable.
Renters (81%) felt the strongest about this, at 81%.
Overall, 64% of homeowners support government intervention.
Renters demonstrated the strongest support for government sponsored homeownership programs (75%, compared to 49% of homeowners).
However, none of the groups polled are in support of the government raising taxes to do so, with only 20% of homeowners and 41% of renters in agreement.
This article, Zoocasa: How Do Canadians Feel About Homeownership And Real Estate Investments?, appeared first on Shupilov News.